Lower returns to rented land and higher interest rates began to signal the potential for downward pressure on farmland values in 2023 (see farmdoc daily from August 8, 2023). Those signals continue, with current fundamentals suggesting land value reductions of around 3% in 2025. A 3% decline would be in line with observed adjustments since the 1980s as well as expectations from professional farm managers surveyed in 2024. On the other hand, valid arguments exist for continued strength in farmland values. In particular, strength in the average financial position of grain farms suggests declines in farmland values, if they occur, are not likely to be significant in the short term. https://buff.ly/49lf9Eo
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The top 10 states that saw the most significant draw downs in farmland valuation from 1981 to 1987? IA: -60% MN: -54% IN: -47% IL: -47% NE: -45% OH: -40% KS: -39% MS: -38% WI: -30% ND: -28% As long as operators manage their cash flow diligently, they can get through it. This is why watching leverage is vital. Farmers who built a margin of safety during the good times have a path out of tricky situations if they need to borrow against their assets while the chips are down.
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A crucial look into the latest trends that are shaping the farmland market in the Midwest from Compeer Financial. These trends are not only necessary in informing investment decisions, but they also provide much needed insights for the economic future. Their informative report details market shifts over the last 12 months and the outlook for the remainder of 2024 - https://bit.ly/3LQEnPW
After a few years of trending up, farmland prices have stabilized across the Upper Midwest. With ongoing negative pressures on profit margins, cash rents are expected to follow suit. How will this impact the outlook on land values for the remainder of 2024? Find out in our latest farmland values appraisal insights report at: https://bit.ly/3LQEnPW
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In a January 2024 land values report, it showed that the sharp increase in farmland values has begun to slow, and values are holding strong. The report also showed demand for farmland is also holding strong due to the limited supply of land. This limited supply is also anticipated to continue as some landowners decide to hold their assets due to its value. To learn more about the predictions of 2024 farmland values, visit 👉https://lnkd.in/gc6u6_SK #rootagadvisory #farminginthewest #idahoag #farmlandvalues
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Slower Growth in Land Prices Reflects Market Stabilization Land prices have recently shown a decrease in growth, signaling a shift from the rapid increases observed in previous years. Factors such as rising interest rates, increasing farm input & equipment costs, and lower commodity prices are contributing to this moderation. The latest FCC midyear report highlights the market's movement towards price moderation for farmland. It's important to note that land demand varies significantly from one area to another, with premium farmland experiencing high demand. Stay informed about these market trends by checking out the source: https://lnkd.in/gfahK7Ef.
2024 mid-year farmland values increase despite lower revenues and elevated interest rates | FCC
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In a January 2024 land values report, it showed that the sharp increase in farmland values has begun to slow, and values are holding strong. The report also showed demand for farmland is also holding strong due to the limited supply of land. This limited supply is also anticipated to continue as some landowners decide to hold their assets due to its value. To learn more about the predictions of 2024 farmland values, visit 👉https://lnkd.in/g6MjCvJX #rootagadvisory #farminginthewest #idahoag #farmlandvalues
Farmland Values Remain Strong, Expected To Stabilize In 2024
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Why Land Values Last This November 30, 2024, news article, Land Investments Hold Long-Term Value, from Progressive Farmer, examines and details farmland values from 1950 to 2023. It addresses the question of cooling of land values, and provides a supportive framework for why land values last. Learn about farmland values’ structural soundness, positive drivers, its investment appeal, as well as a look at its owners vs. operators. Read more here - https://bit.ly/3CUePAp #landvalues #
Why Land Values Last
dtnpf.com
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OUTLOOK FOR FARMLAND VALUES IN 2025 — by Nick Paulson, Gary Schnitkey and Carl Zulauf Lower returns to rented land and higher interest rates began to signal the potential for downward pressure on farmland values in 2023. Those signals continue, with current fundamentals suggesting land value reductions of around 3% in 2025. A 3% decline would be in line with observed adjustments since the 1980s as well as expectations from professional farm managers surveyed in 2024. On the other hand, valid arguments exist for continued strength in farmland values. In particular, strength in the average financial position of grain farms suggests declines in farmland values, if they occur, are not likely to be significant in the short term. Read more: https://lnkd.in/eFXWs-TV #farmland #interestrates #value #land #farm #grain
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Earlier this week, RaFF released the spring 2024 Missouri Farm Income Outlook report. Accompanying reports from Arkansas, Kansas and Nebraska, the Missouri report explores farm financial indicators and projections for the Show-Me State. According to the report, Missouri net farm income is projected to decline $3.6 billion in 2024, continuing a downward trend from record-setting farm income levels seen in 2022. Moving forward, the state's net farm income is projected to increase in 2025 and 2026. Find out more about the impact of farm receipts, production expenses and government payments by reading the full report and dataset. Both are available at
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Perspectives and strategies for dealing with low farm incomes in 2024 and beyond Net incomes on many Midwest grain farms will be negative in 2024, some of the lowest in the past 30 years. Low incomes could continue into future years. Herein, we present eight strategies for dealing with low incomes. Also, prospects for ad hoc Federal...Read More>>> https://buff.ly/47Znaye #FeedMills #BulkMaterialHandling #SiloConstruction #SlipFormConcrete #CementSilo
Perspectives and strategies for dealing with low farm incomes in 2024 and beyond
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RaFF just released the Fall 2024 Missouri Farm Income Outlook report, first of many for various states across the Midwest! The report explores farm financial indicators and projections for the Show-Me State. According to the report, Missouri net farm income is projected to decline $3.6 billion in 2024. Although taking another dip from the record-setting farm income level seen in 2022, the 16% decline in 2024 net farm income is still the 4th highest in Missouri's history. Find out more about the impact of farm receipts, production expenses and government payments by reading the full report and dataset. Available at: https://lnkd.in/gy9ATsb2
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